LIFE INSURANCE CORPORATION OF INDIA

A Presentation By :

PREVIEW

INTRODUCTION HISTORY OBJECTIVES OF L I C ORGANISATIONAL SET UP OF LIC SUBSIDIARIES OF LIC PRODUCTS OF LIC ACHIEVEMENTS OF LIC MARKT SHARE OF LIFE INSURANCE PLAYER

Insurance is a social device to reduce or eliminate risk of loss to life and property . Insurance is a legal contract between two parties called the insurer who undertakes to pay a fix amount of money on the happening of a particular event , which may be certain or uncertain. The other party called the insured pays in exchange a fixed sum known as premium. The insurer document which embodies the contract is called the policy.

On 19 January 1956,154 Indian insurers, 16 non Indian insurers and 75 provident societies operating in India, were taken over by the Central Government and then nationalized on 1 September 1956. The LIC of India come into existence on 1 September 1956 as an autonomous body with five zonal offices, 33 divisional offices, and 212 branches and sub-offices all over India at 97 centers.

Vision A trans-nationally competitive financial conglomerate

of significance to societies and pride of India.

Mission- Explore and enhance the quality of life of

people through financial security by providing products and services of aspired attributes with return, and by rendering resources for economic development.

Objectives of LIC

Spread life insurance much more widely and in particular to the rural areas and to the socially and economically backward classes. Maximise mobilization of peoples saving by making insurancelinked saving adequately attractive. Conduct business with utmost economy and with the full realization that the money belongs to the policy holders. Act as trustees of the insured public in there individual and collective capacities. Meet the various life insurance needs of the community that would arise in the changing social and economic environment.

Organizational set up of LIC

Board of Directors Chairman Managing Directors Executive Director (5) Head Office (Mumbai) Zonal Office(7) Divisional office(100) Special cell (Srinagar) Branch offices(2048) Agents(1002149)

LIC- subsidiaries

LIC Insurance Corporation (International) EC: It was established in 1989 as an offshore company by LIC of India, with partnership with M/s International Agencies co. ltd, a leading business enterprise in Bahrain. The objectives of the company are to cater to the life insurance needs of non-resident Indians and to help non-resident Indians obtain housing loans for purchase/construction of houses/flats in India through LIC Housing Finance Limited India. LIC Mutual Fund: The LIC Mutual Fund was set up in June 1989 as a separate trust by LIC of India with a view to providing accessibility of various investment media, including the stock markets to all the sections of investors, particularly the small investors in rural and semi-urban areas. Overseas Venture: LICs overseas ventures include LIC (Nepal) which begun operations in December 2001 and LIC (Lanka) limited , a joint venture between LIC and Bartlect group was set up in 2002.

LIC Products

Individual plans Whole life schemes Endowment schemes Term assurance plan Periodic money-back plan Medical benefits linked insurance Plans to cover housing loans Joint life plan Plans for childrens need

Group schemes Group term insurance scheme Group insurance scheme in corporation with superannuation scheme Group gratuity scheme Group savings link insurance scheme Group leave encashment scheme Pension plan Jeevan Nidhi Jeevan Akshya Future plus Jeevan Suraksha / Dhara

ACHIEVEMENTS

LIC is one of the largest life insurance companies in the world with in-force policy based of 190 million. LIC won Awaaz Consumer Award 2006 in the insurance category as the most preferred companies. It was also awarded by NDTV profit business leader in insurance. LIC launched Jeenran madhir- a micro insurance product in 2006. The corporations growth rate of 184% during 2008 was much higher than the industry growth rate(163%).

Market share of Life Insurance Players

Life Insurer Premium 2006 28906 2080 1520 814 659 384 372 Premium 2005 10160 998 817 205 427 262 186 Percent Market Growth share(% ) 184.4 79.65 108.3 5.73 86.0 4.19 297.1 2.24 54.1 1.81 46.5 1.05 99.8 1.02

LIC ICICIPru` Bajaj Allianz SBI Life HDFC SLIC Birla Sun life Max new yark

Aviva Tata AIG Reliance life Kotak ING Vysya Met life Sahara life Total

346 326 280 217 208 116 10 36289

155 224 73 99 88 55 7 13763

122.4 45.6 280.4 117.8 136.6 108.6 40.0 163.6

0.95 0.89 0.77 0.59 0.57 0.32 0.03 100

Thank You